Lender Company provides post retirement health care benefits to employees who provide at least 10...
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Accounting
Lender Company provides post retirement health care benefits to employees who provide at least 10 years of service and reach the age of 65 while in service. On January 1 of the current calendar year, the following plan related data were available:
APBO balance $155000000 fair value of plan assets none avg remaining service period to retirement 25 years avg remaining service period to full eligibility 20 years.
On January 1 of the current year, Lender amends the plan to provide dental benefits. The actuary determines that the cost of making the amendment increases the APBO by 25 million dollars. management chooses to amortize this amount on a straight-line basis. The service cost is 45 million dollars. The appropriate interest rate is 10%.
1. Calculate the post retirement benefit expense for the current year.
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